On Apr 13, 2016, Zacks Investment Research upgraded Syngenta AG (SYT - Free Report) to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell). Going by the Zacks model, companies with a Zacks Rank #3 are likely to perform in line with the broader market over the next quarters.
Why the Upgrade?
By 2018, Syngenta expects savings worth $1 billion and an EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) margin of 24–26%. The company anticipates its new Accelerating Operational Leverage program, once materialized, to help it in generating adequate free cash flow to finance future investment plans. The company is also trying to boost its top line and bottom line via greater product innovation and by capturing the growing market demand for specialized pesticides and seeds that ensure higher crop productivity and food quality.
However, the stock remains exposed to certain headwinds. For instance, fall in glyphosate pries and tight credit conditions in certain niche markets are currently weighing on the company’s top line. Also, the appreciating U.S. dollar and intense competition are causes of concern.
We note that the analysts remain cautious on the stock, which is clearly evident from the downward revision in the Zacks Consensus Estimate over the past 90 days. As a result, estimates for the stock fell roughly 1.6% to $3.72 per share for 2016 and 1.5% to $4.02 for 2017.
Stocks to Consider
Some better-ranked stocks in the industry include Bunge Limited (BG - Free Report) , First Majestic Silver Corp. (AG - Free Report) and AgroFresh Solutions, Inc. . All the three companies currently hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Apr 13, 2016, Zacks Investment Research upgraded Syngenta AG (SYT - Free Report) to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell). Going by the Zacks model, companies with a Zacks Rank #3 are likely to perform in line with the broader market over the next quarters.
Why the Upgrade?
By 2018, Syngenta expects savings worth $1 billion and an EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) margin of 24–26%. The company anticipates its new Accelerating Operational Leverage program, once materialized, to help it in generating adequate free cash flow to finance future investment plans. The company is also trying to boost its top line and bottom line via greater product innovation and by capturing the growing market demand for specialized pesticides and seeds that ensure higher crop productivity and food quality.
However, the stock remains exposed to certain headwinds. For instance, fall in glyphosate pries and tight credit conditions in certain niche markets are currently weighing on the company’s top line. Also, the appreciating U.S. dollar and intense competition are causes of concern.
We note that the analysts remain cautious on the stock, which is clearly evident from the downward revision in the Zacks Consensus Estimate over the past 90 days. As a result, estimates for the stock fell roughly 1.6% to $3.72 per share for 2016 and 1.5% to $4.02 for 2017.
Stocks to Consider
Some better-ranked stocks in the industry include Bunge Limited (BG - Free Report) , First Majestic Silver Corp. (AG - Free Report) and AgroFresh Solutions, Inc. . All the three companies currently hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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